Groupe SEB | 2018 first-quarter sales and financial data · 2018 First-Quarter Sales and Financial...
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2018 FIRST-QUARTER SALES
AND FINANCIAL DATA 26 April 2018
22018 First-Quarter Sales and Financial Data
2018 FIRST-QUARTER SALES
AND FINANCIAL DATA
DISCLAIMER
Some of the statements contained in this document may be forward- looking statements
concerning Groupe SEB's financial position, results, businesses, strategy or projects. Groupe SEB
considers that such statements are based on reasonable assumptions but cannot and does not give
any assurance that the Group's future performance will be consistent with those statements.
Actual results could differ from those currently anticipated in such statements due to a certain
number of inherent risks and uncertainties, most of which are beyond Groupe SEB's control, such as
those described in the documents filed or to be filed by Groupe SEB with the French securities regulator
(Autorité des Marchés Financiers) and made available for downloading from the Company's
website
www.groupeseb.com
32018 First-Quarter Sales and Financial Data
2018 FIRST-QUARTER SALES
AND FINANCIAL DATA
1 Figures
2 Business review by geography
3 2018 Outlook
4 Appendix
42018 First-Quarter Sales and Financial Data
FIGURES
52018 First-Quarter Sales and Financial Data
Key figures – Q1 2018
Revenue
€1,559m
Net debt at 31/03
€1,725m-€180m vs 31/12/2017
€123mas reported
-6% in €
Operating Result from Activity
€138mLFL and excl. 2017 PPA one-off
Stable
+2.1% in € +7.4% LFL
62018 First-Quarter Sales and Financial Data
Organic growth in sales by quarter
11.5
8.6 8.8
6.0
9.4
7.97.8 7.2
5.16.9 6.5
7.4
0
2
4
6
8
10
12
T1 T2 T3 T4
2015
2016
2017
2018
2015 2016 2017
+8.0% +6.1% +9.2%
8.4
En %
Full year
72018 First-Quarter Sales and Financial Data
Analysis of Q1 2018 sales growth
In €m
Q1 2017
1,527
1,559
Q1 2018
+114
Organic
growth
+7.4%
+2.1%
+4
Others
+0.3%
-86
Currency
effect
-5.6%
82018 First-Quarter Sales and Financial Data
Currency impact on Q1 2018 sales
In €mGroupe SEB : Q1 - 86 M€
-35
-30
-25
-20
-15
-10
-5
0
AR
S
KR
W
CO
P
CH
F
TR
Y
JP
Y
RU
B
BR
L
US
D
CN
Y
92018 First-Quarter Sales and Financial Data
Q1 2018 revenue by region
Q1 2017 Q1 2018As
reportedLFL
EMEA 659 686 +4.1% +6.3%
Western Europe 494 503 +1.8% +2.2%
Other countries 165 183 +10.9% +18.5%
AMERICAS 204 161 -21.1% -11.0%
North America 126 92 -26.7% -19.8%
South America 78 69 -12.2% +4.3%
ASIA 519 578 +11.3% +19.2%
China 403 469 +16.3% +24.1%
Other Asian countries 116 109 -5.8% +2.5%
TOTAL incl. WMF Consumer 1,382 1,425 +3.1% +8.6%
WMF Professional 145 134 -7.4% -3.8%
Groupe SEB 1,527 1,559 +2.1% +7.4%
In €m
102018 First-Quarter Sales and Financial Data
WMF
▪ Consumer sales
Now largely integrated in the business activity of Groupe SEB market subsidiaries
▪ Professional business:
As announced, sales downturn on high comps: two major contracts in Canada and
Japan, delivered through third-quarter 2017.
Excluding these specific deals, core business growing solidly
Recent signing of new large contracts, in the US and China - delivery starting in Q2
2018: very strong momentum again in PCM (Professional Coffee Machines) in the
coming months.
Q1 sales / €m 2017 2018 LFL
Professional 145 134 -3,8%
Consumer 129 124 -2,5%
WMF 274 258 -3,2%
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Q1 2018 sales by region
35%
13%6%
5%
33%
8%
Western Europe
Other EMEA countries
North America
South America
China
Other Asian countries
Consumer Mature / Emerging
countries
Mature Emerging
Consumer 47% 53%
WMF Pro. 84% 16%
GROUPE 50% 50%
€1,425m
122018 First-Quarter Sales and Financial Data
BUSINESS REVIEW
BY GEOGRAPHY
132018 First-Quarter Sales and Financial Data
Western Europe
▪ Mixed picture on the Small Electrical Appliance market in Q1
Remains driven by vacuum cleaners and electrical cooking
▪ Groupe SEB: still growing at a firm pace
Growth limited by the Consumer business of WMF, slightly decreasing (but stable in
Germany)
France: good first quarter, bolstered by a widespread momentum in electrical products
and a strong recovery in cookware after a complicated year.
Germany: ongoing brisk growth, propelled by vacuum cleaners, full-automatic
espresso machines and electrical cooking.
Spain: e-commerce / vacuum cleaners driving sales on a buoyant market.
Italy: revenue up excl. LPs on a declining market
UK: still resilient in a difficult environment
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
Western Europe 494 503 +1.8% +2.2% +4.3%
142018 First-Quarter Sales and Financial Data
Other EMEA countries
▪ An ongoing overall positive backdrop despite higher FX volatility
Growing demand in Central Europe, Russia, Turkey…
Sharp / continued depreciation of certain currencies: RUB, TRY, UAH, EGP…
▪ Group strong performance leading to additional market share gains
Continued robust dynamic in Central Europe based on flagship products and
new launches
Russia: stepped-up organic sales expansion bolstered by strong investments in
growth drivers. Champion products: cookware, multicookers, meat-mincers,
vacuum cleaners…
Turkey: tense environment yet confirmed solid and broad-based momentum for
the Group fueled by volumes and price-mix. Increasing contribution of local-for-
local products in Group sales.
Sales down in Saudi Arabia + UAE and in India; growing in Egypt.
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
Other EMEA countries 165 183 +10.9% +18.5% +7.4%
152018 First-Quarter Sales and Financial Data
North America
▪ As announced, a difficult first quarter
USA
High comps in 2017: launch of a range of Krups kitchen electrics in mass retail
General business activity still impacted by structural difficulties in US retail
Turnover dipping in our two key categories cookware and linen care (garment
steamers not offsetting the decline in irons)
Canada
Sharp downturn in sales vs high Q1 2017 comps, in a tougher retail
environment.
Mexico
Double-digit growth fed by mainstays (cookware + irons), strong impetus in
blenders and large-scaled launch of fans
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
North America 126 92 -26.7% -19.8% -12.4%
162018 First-Quarter Sales and Financial Data
South America
▪ Continued depreciation of the real, the Colombian and Argentine pesos
▪ Confirmed improvement of the overall business trend
Brazil
In a mixed economic environment, slight growth in real, with contrasted trend by products
Return to growth in SDA: Itatiaia site ramping-up through positive momentum in fans, a
robust recovery in food preparation and a very strong development in all ironing families
Not yet the case for cookware: on a downward trend in Q1, with full ramp-up effects
expected for the second part of the year
Colombia
Organic sales growth fueled by vigorous gains in fans, thanks to more favorable weather
Argentina
Dynamic in the first quarter, following on from the trend observed throughout 2017
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
South America 78 69 -12.2% +4.3% +4.3%
172018 First-Quarter Sales and Financial Data
China
▪ Demand for small domestic equipment on the rise, essentially driven by
e-commerce development
▪ Ongoing very robust momentum for Supor, on multi-year high comps
Growth drivers: innovation / product dynamic, expansion in new categories, distribution gains including e-commerce,…
Supor outperforming market in both cookware and small electrical appliances
Supor contributing to market upgrade and premiumization
▪ Champion products
Cookware: pressure cookers, pots and pans, thermal mugs…
SDA: kitchen electrics (electrical pressure cookers, mobile induction hobs, kettles, high-speed blenders…), HPC (vacuum cleaners, garment steamers…), LKA (extractor hoods, gas stoves)
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
China 403 469 +16.3% +24.1% +12.5%
182018 First-Quarter Sales and Financial Data
Other asian countries
▪ Currency volatility in the region
▪ Revenue up in almost all countries
Japan: moderate LFL growth nurtured by cookware; business softer in SDA
(kettles and ironing)
South Korea: continued good dynamic (LFL) in a buoyant and very competitive
market. Best sellers: vacuum cleaners, grills, food preparation
Continued development in Australia
Solid momentum in South-East Asia
• Substantial organic growth in Thailand and Malaysia
• Brisk expansion in Vietnam: Supor cookware and rice cookers, AsiaVina
fans and launch of a Tefal SDA range
Q1 sales / €m 2017 2018 REPORTED LFLReminder
LFL 2017
Other asian countries 116 109 -5.8% +2.5% +3.1%
192018 First-Quarter Sales and Financial Data
OUTLOOK
202018 First-Quarter Sales and Financial Data
Priorités
Outlook
▪ Q1 not representative of the full year
▪ However, high-quality 1st quarter 2018 vs high comps
▪ Guidance 2018
Organic sales growth should exceed 5%
At present FOREX rates, the Operating Result from Activity should
increase by more than 5% versus the 2017 ORfA excluding one-off
impacts of WMF PPA
Ongoing debt reduction should lead to a net debt / adjusted
EBITDA below 2 at year-end 2018
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Glossary
222018 First-Quarter Sales and Financial Data
Glossary
On a like-for-like basis (LFL) – OrganicThe amounts and growth rates at constant exchange rates and consolidation scope in a given year compared with the previous year are
calculated:
using the average exchange rates of the previous year for the period in consideration (year, half-year, quarter);
on the basis of the scope of consolidation of the previous year.
This calculation is made primarily for sales and Operating Result from Activity.
Operating Result from Activity (ORfA)Operating Result from Activity (ORfA) is Groupe SEB’s main performance indicator. It corresponds to sales minus operating costs, i.e. the
cost of sales, innovation expenditure (R&D, strategic marketing and design), advertising, operational marketing as well as commercial and
administrative costs. ORfA does not include discretionary and non-discretionary profit-sharing nor other non-recurring operating income and
expense.
Adjusted EBITDAAdjusted EBITDA is equal to Operating Result from Activity minus discretionary and non-discretionary profit-sharing, to which are added
operating depreciation and amortization.
Net debt – Net indebtednessThis term refers to all recurring and non-recurring financial debt minus cash and cash equivalents as well as derivative instruments linked to
Group financing having a maturity of under one year and easily disposed of. Net debt may also include short-term investments with no risk of
a substantial change in value but with maturities of over three months.
Operating cash flowOperating cash flow corresponds to the “net cash from operating activities / net cash used by operating activities” item in the consolidated
cash flow table, restated from non-recurring transactions with an impact on the Group’s net debt (for example, cash outflows related to
restructuring) and after taking account of recurring investments (CAPEX).
232018 First-Quarter Sales and Financial Data
May 16 2018 Annual General Meeting
July 25 | before market opens 2018 first-half sales and results
October 25 | after market close 2018 9 month sales and financial data
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